Special Report Your Job

CFOs predict more layoffs - survey

Chief financial officers don't expect global economy to begin recovery until 2010.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Julianne Pepitone, CNNMoney.com contributing writer

What percentage of new contributions to your retirement account is going into stocks?
  • Zero
  • Less than 25%
  • 25% - 75%
  • More than 75%

NEW YORK (CNNMoney.com) -- Almost three out of five chief financial officers from throughout the world expect future workforce reductions in the recession, which they predict won't abate before next year, according to an annual survey released Tuesday.

The survey, conducted by financial services company American Express and CFO Research Services, polled 285 chief financial officers from the United States and other nations in North America, Europe, Asia and Australia about their thoughts on the future of the economy.

The report focused on ways CFOs plan to control costs during the downturn. Questions about changes in the workforce revealed 59% of respondents expect "a decrease in headcount."

That's in line with U.S. data last week that revealed the unemployment rate hit a 25-year high in April.

And the CFOs don't expect improvement anytime soon - 70% of respondents said the economy won't recover until sometime in 2010.

"Companies are moving into a more mandated environment," said Wendy Prewitt, a vice president at American Express. "Everyone is tightening their belts to manage through the short-term."

Companies are also taking actions now in order to avoid future layoffs, the report said. Half the respondents said they expected to freeze salaries and bonuses, while almost one-third plan to reduce benefits or cut salaries and bonuses.

"They're finding creative ways to keep from having to lay people off," Prewitt said. "They realize they have to keep top talent through the recession."

What they'll do: Almost one-quarter of CFOs surveyed said they planned to reduce work hours or give furloughs, and 16% expected temporary office closures.

Still, the CFOs polled noted several sectors in which it's important to sustain spending: information technology, cited by 69%; employee benefits, named by 64%; marketing, advertising and public relations, named by 57% of CFOs; and research and development, cited by 54%.

While 87% said their companies plan to spend less on business travel this year, revenue-generating travel remained strong - 82% are likely to maintain or increase travel to see new clients or for business development.

Almost two-thirds of the CFOs said they plan to maintain or increase travel to meet with existing clients.

American Express said the survey was completed last month. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.